Fourth Quarter Highlights
* Home sales orders increased 93% to $2.0 billion (8,665 homes)
* Consolidated revenue increased 41% to $2.2 billion
* Net income increased 57% to $136.4 million
* Earnings per share (diluted) increased 24% to $.92
Fiscal Year 2002 Highlights
* Consolidated revenue increased 51% to $6.7 billion
* Net income increased 57% to $404.7 million
* Earnings per share (diluted) increased 29% to $2.87
* Sales backlog increased 46% to $2.8 billion
* Stockholders' equity increased 82% to $2.3 billion
* Homebuilding debt to total capitalization (net of cash) improved to
51.3% from 54.0%
ARLINGTON, Texas, Nov. 12 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Tuesday (November 12, 2002), reported the highest quarterly
earnings in Company history. Net income for the fourth quarter increased 57%
to $136.4 million ($0.92 per share), from $86.8 million ($0.74 per share) for
the same quarter of fiscal 2001. Fourth quarter consolidated revenue
increased 41% to $2.2 billion, from $1.5 billion in the fourth quarter of
fiscal 2001. Homebuilding revenue for the quarter increased 41% to
$2.1 billion (9,554 homes closed), compared to $1.5 billion (7,284 homes
closed) for the year ago quarter.
For the fiscal year ended September 30, 2002, net income increased 57% to
$404.7 million ($2.87 per share), compared to $257.0 million ($2.23 per share)
for fiscal 2001. Consolidated revenue for the year increased 51% to
$6.7 billion, from $4.5 billion for fiscal 2001. Homebuilding revenue for the
year increased 51% to $6.6 billion (29,761 homes closed), compared to
$4.4 billion (21,371 homes closed) for fiscal 2001.
The Company's backlog of homes under contract at September 30, 2002 was a
fiscal year-end record $2.8 billion (12,697 homes), up 46% from $1.9 billion
(9,263 homes) at September 30, 2001. As previously reported, net sales orders
for the fourth quarter were $2.0 billion (8,665 homes), an increase of 93%
compared to $1.0 billion (5,224 homes) for the same quarter of fiscal 2001.
Net sales orders for fiscal year 2002 increased 53% to $6.9 billion
(31,491 homes), compared to $4.5 billion (22,179 homes) for fiscal 2001.
The Company expects earnings per share (diluted) for the quarter ended
December 31, 2002 to be in the range of $0.64 to $0.66 (approximately
159 million diluted shares). The Company expects earnings per share (diluted)
for fiscal year 2003 to be in the range of $3.40 to $3.45 (approximately
160 million diluted shares). This range represents a 18% to 20% increase in
earnings per share over the $2.87 reported in fiscal year 2002, and is based
on projected revenues of approximately $8.0 billion (approximately
35,000 homes closed).
The Company will host a conference call this morning at 10:00 a.m. EST.
The dial-in number is 800-374-9096. The call will also be webcast from
www.drhorton.com on the "Investor Relations" page.
Donald R. Horton, Chairman of the Board, said, "It has been another
record-breaking year for D.R. Horton, and we are excited to have just
completed our 'Silver Anniversary Year' celebrating 25 consecutive years of
growth and increased profitability. We are extremely proud of our employees,
and we would like to thank each of them for their hard work and dedication.
As we start on our next 25 years, our strong fourth quarter sales and our
record backlog at year end position us for another record breaking year in
2003."
Founded in 1978, D.R. Horton, Inc. is engaged in the construction and sale
of high quality homes designed principally for the entry-level and first time
move-up markets. D.R. Horton currently builds and sells homes under the
D.R. Horton, Arappco, Cambridge, Continental, Dietz-Crane, Dobson, Emerald,
Melody, Milburn, Regency, Schuler, SGS Communities, Stafford, Torrey, Trimark,
and Western Pacific names in 20 states and 44 markets, with a geographic
presence in the Midwest, Mid-Atlantic, Southeast, Southwest and Western
regions of the United States. The Company also provides mortgage financing
and title services for homebuyers through its mortgage and title subsidiaries.
Portions of this document may constitute "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995. Although
D.R. Horton believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially different.
All forward-looking statements are based upon information available to D.R.
Horton on the date this release was issued. D.R. Horton does not undertake
any obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Forward-
looking statements in this release relate to the Company's expected earnings
per share for the quarter ending December 31, 2002 and the 2003 fiscal year,
expected fiscal year 2003 revenues and the expectation of another record year
in fiscal year 2003 due to the Company's backlog position. Factors that may
cause the actual results to be materially different from the future results
expressed by the forward-looking statements include, but are not limited to:
changes in general economic, real estate and business conditions; changes in
interest rates and the availability of mortgage financing; governmental
regulations and environmental matters; changes in income tax laws affecting
mortgage interest deductibility; the Company's substantial leverage;
competitive conditions within the industry; the availability of capital to the
Company on favorable terms; the Company's ability to integrate acquisitions
and successfully effect the cost savings, operating efficiencies and revenue
enhancements that are believed available and otherwise to successfully effect
its other growth strategies. Additional information about issues that could
lead to material changes in performance is contained in D.R. Horton's annual
report on Form 10-K and most recent quarterly reports on Form 10-Q, which are
filed with the Securities and Exchange Commission.
D.R. HORTON, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Fiscal year ended
September 30, September 30,
2001 2002 2001 2002
(In millions, except per share amounts)
Homebuilding:
Revenues
Home sales $1,489.9 $2,119.3 $4,289.8 $6,529.6
Land/lot sales 25.7 15.2 93.7 95.6
1,515.6 2,134.5 4,383.5 6,625.2
Cost of sales
Home sales 1,206.0 1,708.3 3,450.8 5,282.1
Land/lot sales 21.6 12.3 76.3 82.3
1,227.6 1,720.6 3,527.1 5,364.4
Gross profit
Home sales 283.9 411.0 839.0 1,247.5
Land/lot sales 4.1 2.9 17.4 13.3
288.0 413.9 856.4 1,260.8
Selling, general and
administrative expense 136.9 201.8 432.0 646.8
Interest expense 2.2 0.8 8.8 6.0
Other expense 20.7 13.0 34.8 16.9
Operating income from
homebuilding 128.2 198.3 380.8 591.1
Financial services:
Revenues 24.4 35.9 72.0 113.6
Selling, general and
administrative expense 14.9 19.5 47.4 67.8
Interest expense 1.7 2.0 5.3 5.5
Other (income) (2.8) (5.5) (7.7) (16.1)
Operating income from financial
services 10.6 19.9 27.0 56.4
Income before income taxes 138.8 218.2 407.8 647.5
Provision for income taxes 52.0 81.8 152.9 242.8
Income before cumulative effect
of change in accounting
principle $86.8 $136.4 $254.9 $404.7
Cumulative effect of change in
accounting principle, net of
income taxes --- --- 2.1 ---
Net income $86.8 $136.4 $257.0 $404.7
Amounts per share -- basic:
Income before cumulative effect
of change in accounting
principle $0.75 $0.93 $2.24 $3.01
Cumulative effect of change in
accounting principle, net of
income taxes --- --- 0.02 ---
Net income per share $0.75 $0.93 $2.26 $3.01
Amounts per share -- diluted:
Income before cumulative effect
of change in accounting
principle $0.74 $0.92 $2.21 $2.87
Cumulative effect of change in
accounting principle, net of
income taxes --- --- 0.02 ---
Net income per share $0.74 $0.92 $2.23 $2.87
Weighted average number of shares:
Basic 115.1 146.5 113.5 134.3
Diluted 117.1 148.8 115.4 141.6
Other Consolidated Financial Data
Interest in home and land cost
of sales $30.7 $46.6 $91.4 $136.1
Depreciation and amortization $12.7 $14.2 $31.2 $32.8
Interest incurred $37.9 $59.2 $136.3 $204.3
D.R. HORTON, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
As of September 30,
2001 2002
(In millions)
ASSETS
Homebuilding:
Cash and cash equivalents $232.3 $92.1
Inventories 2,804.4 4,343.1
Property and equipment (net) 53.1 71.9
Other assets 181.7 430.4
Excess of cost over net assets
acquired (net) 136.2 579.2
3,407.7 5,516.7
Financial services:
Cash and cash equivalents 7.0 12.2
Mortgage loans held for sale 222.8 464.1
Other assets 14.7 24.5
244.5 500.8
$3,652.2 $6,017.5
LIABILITIES
Homebuilding:
Accounts payable and other liabilities $498.6 $834.0
Notes Payable 1,701.7 2,487.0
2,200.3 3,321.0
Financial services:
Accounts payable and other liabilities 10.2 14.3
Notes payable 182.6 391.4
192.8 405.7
2,393.1 3,726.7
Minority interests 8.9 20.9
STOCKHOLDERS' EQUITY
Common stock 0.8 1.5
Additional capital 704.8 1,349.6
Unearned compensation --- (4.4)
Retained earnings 544.6 923.2
1,250.2 2,269.9
$3,652.2 $6,017.5
D.R. HORTON, INC.
($'s in millions)
NET SALES CONTRACTS
Three Months Ended September 30, Fiscal Year Ended September 30,
2001 2002 2001 2002
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 672 $130.6 910 $188.1 2,756 $590.0 3,381 $700.2
Midwest 410 106.5 515 123.4 1,851 481.3 1,909 464.4
Southeast 741 125.9 1,038 178.4 3,007 530.8 3,718 617.0
Southwest 2,306 394.3 3,206 547.8 9,233 1,536.4 12,743 2,131.5
West 1,095 274.7 2,996 958.7 5,332 1,364.1 9,740 2,972.8
5,224 $1,032.0 8,665 $1,996.4 22,179 $4,502.6 31,491 $6,885.9
HOMES CLOSED
Three Months Ended September 30, Fiscal Year Ended September 30,
2001 2002 2001 2002
Units $'s Units $'s Units $'s Units $'s
Mid-Atlantic 807 $175.0 934 $194.6 2,757 $607.2 2,950 $625.7
Midwest 522 130.3 588 155.2 1,833 443.9 1,911 488.7
Southeast 906 160.5 997 166.2 2,882 508.8 3,513 595.8
Southwest 2,947 498.6 3,888 644.4 8,902 1,480.3 11,859 1,997.3
West 2,102 525.5 3,147 958.9 4,997 1,249.6 9,528 2,822.1
7,284 $1,489.9 9,554 $2,119.3 21,371 $4,289.8 29,761 $6,529.6
SALES CONTRACT BACKLOG
As of September 30,
2001 2002
Units $'s Units $'s
Mid-Atlantic 822 $190.3 1,253 $264.8
Midwest 918 262.8 916 238.5
Southeast 1,464 253.6 1,669 274.7
Southwest 4,235 738.0 5,186 887.8
West 1,824 489.1 3,673 1,159.4
9,263 $1,933.8 12,697 $2,825.2
WEBSITE ADDRESS: www.DRHORTON.com
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